Coinbase Users Slam Staking | Poor Returns Ignite Anger
Edited By
Ritika Sharma
A wave of discontent among users has surfaced as frustrations mount over low staking rewards on Coinbase. Recently, one user shared their experience, citing major shortfalls in returns compared to alternatives, raising questions about the platform's setup.
Users Pull Out Amid Poor APY
Many users are reporting dissatisfaction with the 5-6% APY offered by Coinbase, deeming it inadequate when liquid staking services like The Vault, Marinade, and Jito promise 6-8%+ returns. The trend has prompted users to reconsider their staked holdings.
Reasons Behind the Frustration
Locked Funds: Users complain about funds being inaccessible for extended periods due to the platform's "withdrawal pause" system. This makes trading or selling during market surges impossible.
Missed Opportunities: Users express frustration at missing potential profits, particularly in the Solana ecosystem, often due to Coinbase’s high fees.
Growing Liquid Staking Options: With decentralized exchanges (DEXs) moving in on the staking market, many users question why they should stick with centralized exchanges (CEXs) like Coinbase.
"With the rise of solid DEX options, it’s frustrating to be tied down to a CEX," said one user who recently switched platforms.
Notably, some commenters on user boards highlighted a general trend where the percentage offered through CEX staking often fails to reflect the actual returns received.
User Insights
"Many assume their funds are safer on established platforms, but the risk is still inherent."
"There's no need to get ripped off by a centralized exchange. Both off-ramping and staking can now be done easily through DEX alternatives."
Key Points to Consider
✖️ Users claim 30% of potential staking rewards are skimmed by Coinbase.
🔍 Liquid staking platforms are becoming increasingly popular, providing higher yields without locking up assets.
💬 "Who is still shilling CEX staking in 2025?" – A common question among frustrated stakeholders.
Continued user frustration suggests that many are looking for alternatives. As more people explore decentralized solutions, the future of staking on Coinbase hangs in the balance. It's becoming clearer: when it comes to staking, getting a fair return might require changing platforms.